Real Estate Wholesale Profit Calculator

How it is calculated

The tool works backwards from the after-repair value (ARV). The most an investor buyer could pay is MAO = ARV × rule % ÷ 100 − repair costs, where the rule percentage is the share of ARV the investor will spend (70 is the classic rule of thumb). The assignment fee is the spread between that and the price you have the property under contract for: assignment fee = MAO − contract price. Net profit is assignment fee − closing costs − marketing costs. The tool also prints total costs, net profit ÷ ARV × 100 as the spread percentage, and ROI as net profit ÷ (closing + marketing) × 100, which is 0 if those costs are 0. A positive net profit gets a "room for a profit" verdict, otherwise a walk-away message. ARV and contract price must be above 0, repairs and the two cost fields cannot be negative, and the rule percentage must be above 0 and at most 100. If the repairs use up the whole discounted ARV (MAO of zero or less), no buyer offer exists and there is no result.

Common mistakes

• Typing the 70 % rule as 0.7. The tool reads 0.7 % of ARV, so the maximum offer would be negative and the tool shows no result.
• Using the current market value instead of the after-repair value. The rule only makes sense on ARV, and a low figure makes every deal look bad.
• Leaving out holding, title or earnest-money costs. Only closing and marketing costs are counted, so real profit can be lower.
• Reading the very high ROI (334.78% here) as a return on your capital. It divides profit by closing and marketing costs alone, which are small in a wholesale deal.
• Entering repairs close to ARV × rule %. In this example repairs of 175,000 or more give no result at all, and 174,999 leaves a buyer offer of only $1.00, so the contract price can never be covered.